Sustainability; No Longer Simply a Buzz Word
As sustainability becomes a more prominent topic in all spaces globally, the reality of required climate disclosures is setting in. Since the creation of the Task Force on Climate-Related Financial Disclosures (TCFD), many governing body's regulations have shifted to align closely with its framework. With this list including the Securities and Exchange Commission (SEC) in the United States, the Corporate Sustainability Reporting Directive (CSRD), and other initiatives, the priority of sustainability has shifted to the top of everyone's to-do lists.
Organizations are focused now more than ever on these practices to remain compliant with their applicable regulations. For example, the SEC has begun monitoring for possible discrepancies between companies' public sustainability disclosures and their SEC filings. As these requirements continue to evolve, there will be challenges in adjusting operations to remain compliant.
Many companies are setting carbon-neutral and carbon-negative goals in the next 5-10 years. Since supply chains contribute to a company's emissions, they are the easiest target to start with when planning to achieve sustainability goals. (McKinsey & Company,2023)